Financial Terms Flashcards

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Gross pay

Back

The amount of money you receive before taxes are withheld.

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Net pay

Back

The amount of money you end up with after taxes are withheld.

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Taxes withheld

Back

The portion of your gross pay that is taken by the government and goes towards your income taxes.

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Mortgage

Back

Loans used to buy a home or to borrow money against the value of a home you already own.

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Principal

Back

The original sum of money that's borrowed in a loan or placed into an investment.

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Interest

Back

Money paid regularly at a particular rate for the use of money lent or for delaying the repayment of a debt.

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Down Payment

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A sum a buyer pays upfront when purchasing an expensive good such as a home or car.

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Credit Score

Back

A prediction of your credit behavior, such as how likely you are to repay a loan on time, based on information from your credit reports.

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Insurance

Back

A contract between you (or a business) and an insurance company to help protect you and your loved ones from financial loss due to an unexpected event.

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Simple Interest

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The interest charge on borrowing that's calculated using an original principal amount only and an interest rate that never changes.